Accenture Plc (NYSE:ACN) stock fell 6.24% (As on June 20, 11:29:04 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the third quarter of FY25. However, new bookings during the quarter stood at $19.7 billion, down 6% in US dollar terms. Generative AI new bookings was of $1.5 billion. Consulting accounted for $9.08 billion and managed services brought in $10.62 billion. Generative AI-related bookings contributed $1.5 billion. Despite a year-on-year decline in new bookings, the company reported 30 clients with over $100 million in quarterly bookings. Growth was broad-based. Managed services revenue rose 9% to $8.72 billion, while consulting grew 7% to $9.01 billion. By region, the Americas contributed $8.97 billion, followed by EMEA at $6.23 billion and Asia Pacific at $2.53 billion. Among verticals, Products generated $5.34 billion in revenue, while Financial Services led in growth terms with a 13% increase in local currency. Health & Public Service grew 7%. Accenture generated $3.5 billion in free cash flow and declared a quarterly dividend of $1.48 per share.
Moreover, ACN has agreed to acquire the Integrated Product Support (IPS) business of SIPAL in Italy. The acquisition will strengthen Accenture’s engineering capabilities for Italian and European aerospace and defense clients. The acquisition is part of Accenture’s ongoing commitment to helping companies reinvent how they design, engineer and manufacture products and services with technology, specialized talent and intelligent processes. The company has expanded support for high-potential AI startups with a new engagement initiative, established through Accenture Ventures with support from NVIDIA Inception.
ACN in the third quarter of FY25 has reported the adjusted earnings per share of $3.49, beating the analysts’ estimates for the adjusted earnings per share of $3.30, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 8 percent to $17.73 billion in the third quarter of FY25, beating the analysts’ estimates for revenue by 2.56%. Operating margin was of 16.8%, an increase of 80 basis points, and an increase of 40 basis points compared to adjusted operating margin.
The company raised its full-year revenue growth forecast to 6–7% in local currency, up from 5–7% earlier. Free-cash-flow guidance was bumped up to a range of $9 billion to $9.7 billion, and earnings per share are now expected to come in between $12.77 and $12.89. The company now expects operating margin to be 15.6%, an expansion of 10 basis points over adjusted operating margin.